IMF toughens stance on 2007 budget surplus._x000d_
19.10.2006
Source: Dnevnik
Bulgaria should keep a tight fiscal policy next year making sure though, its budget surplus targets are approved by parliament, the IMF was quoted by Reuters news agency. Bulgaria has had intentionally underestimated budget revenues over the last three years to achieve significant fiscal surpluses, winning mixed praise and criticism from the Fund, said Reuters. IMF head of mission Robert Hagemann said Bulgaria must shoot for a budget surplus of at least 2.0% of GDP next year to counter risks arising from its huge current account gap, expected to expand up to 15% of GDP this year.
The Socialist-led government has officially approved a plan for a surplus of 0.8% of GDP. Last week finance minister Oresharski said he would follow the IMF's position by aiming for around the same surplus expected this year - 3.0% of GDP. That would include the IMF's recommended 2.0% surplus and another 1.2% in dues to the EU budget, he said.